The Challenge
- Science infrastructure can drive development and offer a good return on
investment, but it requires a solid business case for investors to deploy capital. - Donors and foreign governments have historically funded science and research in low – and middle-income countries (LMICs). However major international development funders, such as the US, UK and European countries, have cut their foreign aid.
- Innovative financial mechanisms can unlock capital market investment for
science infrastructure in LMICs, namely using blended finance, multilateral
development banks (MDBs), and government guarantees to de-risk investments. - The capital market offers more sustainable finance for LMIC science
infrastructure than donor – or aid-linked funding and allows countries
to set their development agenda.
Authors
Raúl C. Rosales
Senior Executive Fellow, Imperial College Business School
Francis Malige
Managing Director and Head of Financial Institutions
Business Group, European Bank for Reconstruction
and Development
Attiya Waris
Professor of Fiscal Law, University of Nairobi
and UN Independent Expert in Foreign Debt